Foreign tourism, an increasingly important part of the U.S. economy, is slipping over the brink as international visitations crater. During pre-pandemic 2024, the United States received about 72 million foreign visitors. That was almost half the 78 million that visited the country back in 2019, sending wide ripples of worry throughout industries that rely heavily on international tourists’ dollars.
According to the U.S. Travel Association’s president and CEO, Geoff Freeman, foreign visitors contributed more than $180 billion to the U.S. economy in 2024, surpassing the combined revenues of all agricultural exports. This data point highlights just how key foreign tourists are, as they tend to be the more profitable spenders compared to home-based travelers. The average American who visits abroad from overseas spreads more than $4,000 a trip. That’s eight times more than the average American tourist spends traveling domestically.
A recently released report from Oxford Economics makes for some scary reading. It shows an overall 12% decline in international visits to the U.S. for March year-over-year. This loss can be seen in decreased forward-looking bookings, especially from our friends up north, as southern summer reservations are down more than 30% from Canada. During a time where visits from every individual country in Western Europe, Asia, and South America are down by double-digit percentages.
Several factors contribute to this downturn. Within two weeks, on April 6, China had responded with a travel risk alert for their citizens visiting the U.S. They cited failing economic relationships and indicated worry about interior capital. European countries have issued travel advisories, cautioning their citizens of increased border scrutiny and travel document complications.
Cities such as Las Vegas, Los Angeles, Miami, New York, Orlando, and San Francisco typically attract the largest shares of foreign tourists. We know that non-residents account for less than 10% of total U.S. tourism demand. Their absence endangers local economies that are dependent on the injection of cash these visitors provide.
Freeman observed that the general feel of heightened examination at international borders, regardless of actual experience, has instilled fear in would-be international travelers.
“Whether fair or not, a perception is taking hold that more people are being detained, more devices [are] being searched and legal travelers [are] being deported back to their origin country,” – Geoff Freeman
He went on to say that this is “creating a tremendous amount of panic.” As a result, countless travelers have had to re-evaluate their vacations this summer and fall. For example, many Americans say they plan to travel to other places – like Canada or Europe – instead.
As one Redditor just disclosed, they recently decided to cancel three planned cruises in the U.S. for the next several months. Instead, they are treating themselves with exciting vacations across Canada and Europe.
“Proud to say we’ve cancelled 3 US based cruises over the next 2 years and instead will be vacationing in Europe and Canada,” – Reddit commenter
The economic impact is substantial. According to UNWTO projections, international tourism is forecast to decrease by 60-80%. That drop has been estimated to cost the U.S. economy about $10 billion this year versus 2024. The drop is clear not just in how many visitors are coming, but in the bottom lines of tourism businesses. As of April 2025, just 32% of tourism businesses were still turning a profit. That is a decrease from 41% in Apr. 2024 and 43% in Apr. 2023.
Canadian tourists helped make March’s decline monumental, as they slashed travel by 85.5%. Air arrivals declined by 14%, but land arrivals really tanked, falling by 32% over the last year.
Many industry experts still have a glass-is-half-full (or at least half-very-cool) perspective. Lorraine Sileo noted that recent trends in the market are worrying. That doesn’t mean things are all doom and gloom for the U.S. travel industry, according to her.
“I don’t think it’s all doom and gloom for the U.S. travel industry,” – Lorraine Sileo
Given all these changes, Canadian Prime Minister Justin Trudeau has been urging Canadians to look at home. He echoed those sentiments by saying that there’s never been a better time to visit Canada.
“Now is also the time to choose Canada,” – Justin Trudeau
As businesses across the country prepare for declining sales because of this downturn in foreign tourism, several important constituencies are crossing their fingers with expectations of a rebound. As business owners and residents alike say on the show, they refuse to go down without a fight on these challenges.
“It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites and tourist destinations our great country has to offer,” – Justin Trudeau
As businesses brace for falling sales due to this decline in foreign tourism, many stakeholders remain hopeful for recovery. Residents and business owners alike express determination in facing these challenges head-on.
“We’ll batten down the hatches and make the best of it,” – Kaia Matheny